US stocks slipped on Monday, jeopardising the S&P 500's 4-day winning streak after data showed Americans only modestly increased spending and Spain slipped into recession.
US household income rose in March by the most in three months but consumers increased spending slightly and saved more instead, data showed.
"This is decent overall but nothing amazing. The spending number is an indication that the higher gas prices we saw last month are taking their toll," said Todd Schoenberger, managing principal at the Blackbay Group in New York.
The S&P 500 is down 0.8% for April, putting the index on track for its first monthly decline since November as investors grappled with a flare-up of the euro zone debt crisis and US data that has hinted at a stalled recovery.
The Institute for Supply Management-Chicago's business barometer fell to 56.2, coming in below forecasts but still above the 50 level that signifies expansion.
The Dow Jones industrial average was down 3.03 points, or 0.02%, at 13,225.28. The Standard & Poor's 500 Index was off 4.29 points, or 0.31%, at 1,399.07. The Nasdaq Composite Index took off 15.05 points, or 0.49%, at 3,054.15.
Spain's economy sank into recession in the first quarter as deep government spending cuts to reduce a massive deficit and troubles in the banking sector likely delayed any return to growth.
Humana Inc dropped 6.1% to $82.45 after the company, one of the largest providers of Medicare government plans for the elderly, posted a 21% decline in profit and missed Wall Street's target. The Morgan Stanley healthcare payor index declined 1.3%.
NYSE Euronext profit fell by almost one-third due to a difficult trading environment and costs from its failed merger with Deutsche Boerse. Shares fell 4.1% to $25.97.
A total of 12 S&P 500 companies were scheduled to report earnings on Monday, including Anadarko Petroleum Corp and McKesson Corp.
According to Thomson Reuters data through Monday morning, of the 297 S&P 500 companies that have reported results, 72% topped estimates. A strong earnings season helped lift the benchmark S&P index to its best week since mid-March on Friday.
Pipeline operator Energy Transfer Partners LP will buy Sunoco Inc for $5.3 billion as it focuses on transporting more crude oil and refined products amid falling natural gas prices. Sunoco soared 20.3% to $49.23 and Energy Transfer rose 0.7% to $48.24.
Barnes & Noble Inc surged 63.2% to $22.33 after Microsoft Corp agreed to invest $300 million in the bookseller's digital and college operations in a deal that values the businesses at $1.7 billion.
Gen-Probe Inc climbed 19% to $81.75 after Hologic Inc said it would acquire the diagnostic test maker for about $3.75 billion in cash. Hologic shares dropped 9% to $19.32.
